Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to announce that its recently completed Twin Well located in Mitchell County, Texas, within the Permian Basin (the “Twin Well”), has produced an average of 52 barrels of oil per day (“bopd”) from the Clear Fork Formation, over the most recent 12-day production period.
The Twin Well was drilled to a total depth of 3,200 feet, encountering more than 113 feet of gross oil pay in aggregate across multiple prospective zones, with oil currently being produced from the Clear Fork Formation. Nostra Terra owns a 53.25% Working Interest in the 120 acre lease which has two additional drill ready locations, one of which is now being permitted.
The Twin Well was put into production earlier this month. During the initial flow from the well, the existing tank battery required some minor upgrades due to increased flow rates. This resulted in approximately 60 hours of shut-in time over the initial ten days’ production. Since then, average oil production for the last 12 days has been 52.30 bopd, which is above pre-drill estimates, based on a 24-hour average production rate. The Company considers this time period to be of sufficient length to gain an appropriate assessment of the well’s gross initial production rate.
Nostra Terra is in “pay status” with respect to the Twin Well, meaning that the Company receives revenue paid monthly from its share of oil produced. 495 gross barrels of oil have been sold from the Twin Well’s lease so far in February 2018.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
“We are delighted with the results from the Twin Well, which have surpassed our expectations. By putting the Twin Well into immediate production and with it being in pay status, this has made an immediate and significant contribution to the Company’s cash flow generation.
Overall, we went from acquisition and permitting to producing and receiving revenues in less than four months. This highlights the transformational potential our Permian Basin strategy has for Nostra Terra. With 24 drill ready locations and funding in place, we can now move forward confidently onto our next drilling location.”
Share Talk has covered (AIM: NTOG) steady climb from below 2p and we would like to wish Matt & the team all the best moving forward in 2018.
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